Assume consumption is represented by the following function: C=400+0.75Y. Also assume that planned investment (I) equals 100 and there are no government or taxes.

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A: *SOLUTION :- 8)   The answer is = 77.5

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Q: An economy's consumption

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Q: Make a graph based off the following: Construct a consumption function from the data given here and…

A: Answer: Graphical presentation of the consumption function: According to the above figure, the…

Q: what is held constant along the consumption function.

A: The only part is constant in the consumption function is autonomous consumption which is…

Q: QUESTION 9 As a result of entering the world economy, Neverland experiences economic boom and its…

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Q: Calculate autonomous spending with the given info C = 400 + 0.6Y

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Q: (M: 10,000 Government Spending (G): 1,500 Desired Consumption (C): 8,500 If the goods market is in…

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Q: Assume:     Yd  = $ 5000 billion      b = .95      a = $ 520 billion A)What is consumption (C) ?…

A: The consumption function, often referred to as the Kanezian consumption function, is an economic…

Q: The investment function is I = 3-10i. What is investment when the interest rate i is equal to 0.10 =…

A: Given:  Investment Function : I=3-10i Interest Rate = 10% Government Spending : G

Q: Please round to 2 decimal places

A: The formula used to calculate Aggregate Expenditure (AE) is derived from the equation AE=C+I, where…

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A: Answer: Part (a). If consumer bought $8 billion more furniture than previously thought then the…

Q: What could increase autonomous consumption (Ca)?     a) An increase in the products price level.…

A: The level of autonomous consumption can shift in response to events that limit or eliminate sources…

Q: # Calculate MPC when it is given that the value of MPS Is 0.66

A: # We know that when we do the summation of MPS and MPC we always get 1  That is:- MPS + MPC = 1

Q: If disposable income is $ 1000 and consumption expenditure is $ 750, find out APS.

A: Disposable income = 1000 dollars Consumption expenditure = $750

Q: Construct a consumption function from the data given here and determine the MPC.

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A: Equilibroum GDP is the level of economic output at which total planned spending in an economy equals…

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Q: Assume that the long-run level of output is Y=1000Y=1000, which the economy is also at initially in…

A: Assume that the long-run level of output is Y=1000Y=1000, which the economy is also at initially in…

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